Mexico’s proposed higher mining royalties could block nearly $7bn in investments
The Mexican government proposed raising mining royalties under the argument that metal prices have risen in recent years.
The precious metals-focused royalty and streaming business model continues to unlock value through win-win deals for exploration and development, Gold Royalty (NYSE-AM: GROY) CEO David Garofalo told The Northern Miner’s recent Global Mining Symposium.
The veteran mining executive has made the transition to the royalty and streaming business. Garofalo is perhaps best remembered for his role as CEO of Goldcorp before its $10 billion merger with what is the largest gold producer today, Newmont (TSX: NGT; NYSE: NEM), in 2019.
Garofalo believes the world has seen peak gold production, and the industry is now in steady structural decline
He says a 40% drop in global gold reserves over the past seven years has caused a proliferation of metals streaming and royalty companies fiercely competing behind the scenes to meet the industry’s “existential need to reinvest” in exploration and development projects. This comes at a time capital is most critical to build the industry’s next generation of cornerstone mines.
Garofalo believes the world has seen peak gold production, and the industry is now in steady structural decline.
Comments
Andrew S.
Why do you give this guy any air time? He’s a company destroyer time and time again.